3 Stocks For The Long-Haul
Seeking Alpha Analyst Since 2014
By Angel Clark, VectorVest
There I was, doing a little cyber shopping for the holidays, when one of those pesky internet ads that stalk me from site to site actually managed to make an impact. What was this super-duper, wonder ad you ask? It was "10 Stocks to Own Forever."
What a great concept! 'Set it and forget it' investing - it's like a portfolio crockpot! All you have to do is add a few shares of these splendid companies to your portfolio, check back in a few decades and if everything goes as planned, you should be a multi-millionaire. Talk about a dream come true! But is it true? Do these types of companies still exist? And how do you find them?
Intrigued and with high expectations, I clicked on the ad and a video started to roll. About 30 minutes later (which seemed like 3 hours), my eyes started to cross from boredom, as the broadcaster introduced exhibit #55 in the case to convince me why I should own 'Forever Stocks.' Sadly, they never had to 'sell' me, I was already convinced (or at least very easily swayed) the moment I clicked on their ad…I only wish I had known that 'Forever Stocks' meant that it would take an eternity for the loquacious presenter to finally deliver something of substance - like a stock pick, a technique, anything but more cotton-candy fluff! Grrrr.
With no option to fast-forward and no visible light at the end of the tunnel, I gave up the fight and clicked the video window closed. After all, I was just curious which stocks they would recommend (if they actually were going to recommend stocks at some point). I already had my own list of Forever Stocks and I found them in less time than it took the video narrator to introduce himself…and I promise not to make you wait any longer. Drum roll please:
Biogen Idec (BIIB)
Oceanrg Intl (OII)
EcoLab (ECL)
These probably weren't the companies you were expecting. When the topic of 'dream stocks you could retire on' comes up (yep, this actually happens among my circle of friends), stocks like Apple and Google seem to be mentioned ad nauseam - and don't get me wrong, those are great companies! But hey, you stuck with me this long, even if you skipped to the end, so I thought you deserved something more original.
The secret behind all of these companies, and indeed any stock that you should even possibly consider holding forever, is earnings. These companies all have an incredibly solid, long-term track-record of making money. It should be no surprise to you that investors like that. They like it a lot. They want to be part of all that money-making, so they buy as much of that company as they can vis-a-vis stock ownership, which drives the stock price higher, which makes investors want more, which…aww, you get the idea.
Anyhow, these are a few of my forever stocks, check 'em out for yourself and see what you think. If you're wondering how I found them, I used a VectorVest Scan named 'Ruler Stocks' which automatically identifies companies with highly predictable earnings, but if you want to find your own, you absolutely can, all you need to do is follow the money!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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